Mendon's Portfolio Shifts
Mendon Capital Boosts Stakes in Financials, First American Financial Becomes Fund's Top Position in Q1
Anonymous
Key Points
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In Q1, Mendon Capital Advisors Corp added 93,338 Beacon Financial shares, bringing its Beacon stake to 199,731 shares (about 1.7% of its portfolio) with the position valued at roughly $5.99 million.
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In Q1, Mendon Capital Advisors Corp increased its position in USCB Financial by 86,958 shares, for a total of 574,100 shares (about 3.1% of the portfolio), with USCB holdings valued at about $10.64 million.
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California BanCorp (BCAL) insider activity: President Richard Hernandez sold 17,000 BCAL shares on May 8.
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Abacus Global Management (ABX) remains a major holding for Mendon, but the fund trimmed ABX by 3.1% in Q1 to 1,949,321 shares, with ABX accounting for about 4.5% of Mendon's portfolio.
Mendon Capital Advisors Corp made a bold move in the first quarter, nearly doubling its stake in Beacon Financial Corporation (BBT) by 87.7%, according to Watchlist News. The firm added 93,338 shares, bringing its total to 199,731 shares valued at roughly $5.99 million — about 1.7% of its portfolio.
The moves are part of a broader reshuffling across multiple financial stocks. Mendon grew some positions aggressively, trimmed others, and even opened brand-new investments — all in a single quarter.
First American Financial Becomes Mendon's Top Holding
The biggest shift was in First American Financial (FAF). Mendon acquired 1,188,914 shares valued at about $71.7 million. That makes FAF roughly 20.8% of the entire portfolio — its single largest holding by a wide margin.
By comparison, Beacon Financial sits at just 1.7% of the portfolio as the 21st largest holding. The gap shows where Mendon is placing its biggest bets. FAF is a title insurance and settlement services company — a sector sensitive to real estate and mortgage activity.
Mendon Boosts Regional Bank Positions Across the Board
Beyond Beacon, Mendon raised its stake in USCB Financial Holdings (USCB) by 17.9%, adding 86,958 shares for a total of 574,100. That position is worth about $10.64 million and sits as the fund's 9th largest holding at 3.1% of the portfolio, per Watchlist News.
California BanCorp (BCAL) saw an even larger jump — up 58.7% to 404,369 shares, now about 2.1% of the portfolio and the 14th largest holding. Mendon also made a fresh $2 million investment in HomeTrust Bancshares (HTB), buying 46,000-plus shares in a brand-new position, according to Watchlist News.
Mendon Trims Abacus and Cuts Several Other Stakes
Not every move was an increase. Mendon cut its position in Abacus Global Management (ABX) by 3.1%, trimming to 1,949,321 shares. ABX is still the fund's 4th largest holding, valued at about $15.36 million — roughly 4.5% of the portfolio.
Mendon also reduced its stake in Commercial Bancgroup (CBK) by 15.8%, selling 59,214 shares, per Watchlist News. It slashed its Central Bancompany (CBC) position by 50.1%, leaving a $2.40 million stake. These cuts suggest Mendon is rotating out of select smaller names to fund bigger bets elsewhere.
Insider Selling at California BanCorp Adds a Cautionary Note
While Mendon was buying more California BanCorp shares, an insider was selling. President Richard Hernandez sold 17,000 BCAL shares on May 8. Insider sales do not always signal trouble, but they are worth watching alongside a fund's buying activity.
Mendon also made a notable new bet on Nicolet Bankshares (NIC), boosting that holding by 274.9% in Q1 to reach $11.14 million. It also added 63,955 CoastalSouth Bancshares (COSO) shares, growing that stake by 24.1% to 329,743 shares total, according to Watchlist News. Taken together, the filings paint a picture of a fund actively hunting for value in regional banking.
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